AGRICULTURE

Summary: Senate Bill 237

Conference Report CR-1 *

Analyst: William E. Hamilton

		FY 2009-10	FY 2009-10	FY 2009-10	FY 2009-10	*Difference:* *Conference* *From FY 2008-09 YTD*
	FY 2008-09 YTD	Executive	Senate	House	Conference	*Amount*	%
IDG/IDT	$9,539,200	$435,700	$1,362,300	$685,700	$1,282,400	($8,256,800)	(86.5%)
Federal	17,366,900	14,231,100	14,231,100	15,531,100	15,531,100	(1,835,800)	(10.6%)
Local	0	0	0	0	0	0
Private	237,200	243,200	243,200	243,200	243,200	6,000	2.5%
Restricted	43,219,952	34,602,800	40,002,800	39,972,900	36,985,300	(6,234,652)	(14.4%)
GF/GP	28,546,100	33,987,100	30,588,400	30,477,000	30,588,400	2,042,300	7.2%
Gross	$98,909,352	$83,499,900	$86,427,800	$86,909,900	$84,630,400	*($14,278,952)*	*(14.4%)*
FTEs	600.5	597.5	595.5	597.5	593.5	(7.0)	(1.2)

Note: FY 2008-09 figures reflect supplementals and Executive Order (EO) actions throughSeptember 1, 2009.

Overview

The Department of Agriculture promotesMichigan agricultural products and protects the public from disease and unsanitary conditions in food production and handling; regulates product labeling and producer practices for dairy products, animals, and plants; and enforces consumer protection laws in food, standard weights/measures, animal health, plant pests, and diseases.

Budget Summary

The Executive budget for FY 2009-10 proposed the elimination or reduction in several revenue sources, the most significant of these changes are: elimination of $9.2 million in State Services Fee Fund (SSFF) revenue; elimination of Upper Peninsula State Fair revenue; recognition of reductions in Agriculture Equine Industry Development Fund (AEIDF) revenue; continuing reductions in federal support for Emerald Ash Borer program; elimination of $8.9 millionIDG from the Department of Community Health for Local Health Department food service inspection programs; and $700,000 in proposed dairy inspection fees to offset $700,000 GF/GP reduction in Food and Dairy programs.

The Conference Report is $1.1 million (Gross) higher than the Executive, but is $3.4 million less in General Fund (GF/GP) support.

The Conference Report follows the Executive recommendation with regard to elimination of Upper Peninsula State Fair revenue, recognition of reductions in estimated AEIDF revenue, continuing reductions in federal support for Emerald Ash Borer program, and elimination of $8.9 millionIDG from the Department of Community Health for Local Health Department food service inspection programs.

The Conference Report includes $3.2 million in SSFF revenue, both in department operating lines and in support for county fair programs and for the Office of Racing Commissioner. The Conference Report includes $7.7 million in appropriations from the AEIDF, including $6.1 million in direct support for horse racing industry lines.

The Conference Report also recognizes an additional $1.3 million in federal USDA specialty crop grants in Agriculture Development, and $110,000 in proposed Migrant labor housing inspection fees in Environmental Stewardship.

The Conference Report added $273,000 more in GF/GP funding in the Food and Safety Quality Assurance line as compared to the Executive recommendation; GF/GP funding in the line is $271,700 less than the current year. The Executive had proposed an additional $700,000 in increased dairy inspection fees; the Conference Report recognizes $100,000 related to additional dairy inspection fees.

The Conference Report recognizes $300,000 in Interdepartmental Grant (IDG) funding from the Michigan Department of Energy and Economic Growth (DELEG) in Agriculture Development. The Conference Report would eliminate GF/GP support for the Michigan Agricultural Surplus System (MASS) and replace funding, in part with SSFF revenue and in part with IDGs from the Department of Human Services and the Department of Community Health.

Major Budget Changes From FY 2008-09 YTD Appropriations	FY 2008-09 YTD	Conference Change From YTD
*1. Commissions and Boards* Appropriates $23,800; eliminates use of Upper Peninsula State Fair revenue as a fund source.	Gross Restricted GF/GP	$32,800 17,800 $15,000	($9,000) (9,000) $0
*2. Unclassified Positions* Appropriates $213,300 – $140,700 less than the Executive recommendation; eliminates SSFF funding. Funding effectively supports two positions; department director and special projects coordinator.	FTEs Gross Restricted GF/GP	6.0 $319,000 160,500 $158,500	(4.0) ($105,700) (160,500) $54,800
*3. Executive Direction* Appropriates $973,800; replaces SSFF revenue with GF/GP.	FTEs Gross Restricted GF/GP	10.0 $922,600 108,000 $814,600	0.0 $51,200 (71,500) $122,700
*4. Management Services* Appropriates $1,840,900; replaces SSFF revenue with GF/GP.	FTEs Gross Restricted GF/GP	24.0 $1,575,800 136,500 $1,439,300	0.0 $265,100 (15,500) $280,600
*5. Agricultural Statistics* Appropriates $145,000; the Senate had eliminated GF/GP funding.	FTEs Gross Restricted GF/GP	1.0 $143,700 78,400 $65,300	0.0 $1,300 1,300 $0
*6. Emergency Management* Appropriates $747,100; retains $500,000 federal grant (new in current year) and 4.0 relatedFTE positions; replaces SSFF revenue with GF/GP.	FTEs Gross Federal Restricted GF/GP	2.5 $743,300 500,000 243,300 $0	0.0 $3,800 0 (243,300) $237,100
*7. Internal Audit Services* Internal audit functions were transferred to the Department of Management and Budget/State Budget Office in 2009. The Executive budget anticipated transfer of funding to the DMB budget in FY 2009-10.	Gross GF/GP	$216,200 $216,200	($216,200) ($216,200)
*8. Departmentwide –Rent and Building Occupancy* Executive Order 2008-21 reduced current year GF/GP funding by $240,000; Executive Order 2009-22 eliminated all GF/GP funding in the line. The Conference Report appropriations $421,200 – $439,200 less than the Executive – and includes $53,400 SSFF revenue with no support from the AEIDF. Baseline reductions in this line are absorbed by other department program areas – actual building occupancy costs total $1.38 million.	Gross Federal Restricted GF/GP	$718,300 185,400 532,900 $0	($297,200) (32,000) (265,200) $0
*9. Food and Dairy –Food Safety and Quality Assurance* Appropriates $12,539,700; reflects anticipated additional federal grant revenue. Executive had proposed to offset a $700,000 reduction in GF/GP support with milk inspection fee revenue generated from a proposed alternative inspection fee. Of the $700,000 in increased dairy inspection fees proposed by the Executive, the Conference Report recognizes $100,000. The Conference Report is $273,000 more in GF/GP support than the Executive recommendation, $271,700 less GF/GP than the current year. Line item represents the largest share of GF/GP funding in this budget.	FTEs Gross Federal Restricted GF/GP	115.0 $12,748,000 557,400 2,988,800 $9,201,800	0.0 ($208,300) (86,900) 150,300 ($271,700)
*10. Food and Dairy – Local Public Health Program* Eliminates the line item and relatedIDG funding, which are simply placeholders used to recognize the Department's oversight role in local public health department food service inspection program. Elimination of the line will not affect the Department's oversight role or local public health agencies' food service inspection programs which are funded in the Department of Community Health budget.	Gross IDG	$8,878,700 8,878,700	($8,878,700) (8,878,700)
*11. Animal Industry –Animal Heath and Disease Response* Appropriates $2,290,800 – $491,400 less than the current year. Appropriation eliminates AEIDF funding, recognizes $75,000 in cervid fee revenue, and $138,000 animal welfare fund revenue.	FTEs Gross Federal Restricted GF/GP	21.5 $2,782,200 865,100 240,100 $1,677,000	0.0 ($491,400) (395,000) 80,900 ($177,300)
*11a. Bovine Tuberculosis (Animal Industry)* Allocated the second largest GF/GP total within this budget. Offsets reductions in AEIDF and SSFF support with increased GF/GP. Note that the Conference Report does not adopt the Executive proposal to roll-up Animal Health and Welfare and Bovine Tuberculosis into a single Animal Health and Disease Response line item. Total GF/GP support in the two line items within the Animal Industry appropriations unit is $648,000 less than the Executive recommendation.	FTEs Gross Federal Restricted GF/GP	48.5 $7,380,200 900,000 2,120,600 $4,359,600	0.0 ($41,900) (118,900) (2,120,600) $2,197,600
*12. Pesticide and PlantPest* Management** – PPPM Appropriates $11,929,300; recognizes anticipated increase in federal grant revenue, addsIDG from MDELEG. The Conference Report is $336,000 less in GF/GP support than the Executive recommendation, $146,900 less GF/GP than the current year.	FTEs Gross Federal Private Restricted GF/GP	110.0 $11,923,000 2,447,700 148,000 5,165,100 $4,162,200	0.0 $6,300 101,900 4,600 46,700 ($146,900)
*13. Emerald Ash Borer Program* Appropriation of $3.0 million reflects continuing reduction in federal support for thisprogram;appropriationhadbeenas much as $25.0 million in FYs 2003-04 and 2004-05.	FTEs Gross Federal	24.5 $5,191,400 5,191,400	0.0 ($2,157,200) (2,157,200)
*14. Environmental Stewardship* Appropriates $2,582,500. Includes and MDEQIDG for MAEAP program which had not been included in the Executive recommendation because funding source is not supported. Includes $110,000 migrant labor housing inspection fees. GF/GP support is $74,400 less than the current year; $224,100 less than the Executive recommendation.	FTEs Gross IDG Federal Restricted GF/GP	27.0 $2,606,500 268,600 276,500 49,800 $2,011,600	0.0 ($24,000) 176,800 (237,000) 110,600 ($74,400)
*15. Groundwater/Freshwater Protection Program* Appropriates $5,255,100; reduces federal funding to reflect actual anticipated revenue. Restricted revenue from Freshwater protection fund.	FTEs Gross Federal Restricted	15.0 $5,472,500 467,800 5,004,700	0.0 ($217,400) (252,300) 34,900
*16. Technical Assistance Match* Line item supports technicians, working out of local conservation districts, who assist farmers and landowners in completing federally-funded Natural Resources Conservation Service contracts. Not included in Conference Report (rolled into Local conservation districts).	Gross GF/GP	$252,600 $252,600	($252,600) ($252,600)
*17. Local Conservation Districts* Reduces state support to $236,900 GF/GP and adds related boilerplate Section 604.	Gross GF/GP	$756,800 $756,800	($519,900) ($519,900)
*18. Aquifer Protection Program* EliminatesIDG grant funding from the Department of Environmental Quality.	Gross IDG	$50,000 50,000	($50,000) (50,000)
*19. Water Withdrawal Assessment Program* Eliminates this line item that was new in the current year budget.	Gross GF/GP	$130,000 $130,000	($130,000) ($130,000)
*20. Laboratory Services* Appropriates $5,893,100; replaces $519,700 SSFF revenue with AEIDF. GF/GP support is $379,900 less than the current year; $527,000 less than the Executive recommendation.	FTEs Gross IDG Federal Restricted GF/GP	63.0 $6,218,800 189,100 916,200 2,276,400 $2,837,100	0.0 ($325,700) 0 0 54,200 ($379,900)
*21. Consumer Protection Program* Supports motor fuel quality, weights and measures, and metrology laboratory. Restricted revenue from Gasoline inspection and testing fees, Refined petroleum fund, and Weights and measures regulatory fees. Increase reflects economic adjustments.	FTEs Gross Restricted GF/GP	51.0 $5,135,200 5,134,800 $400	0.0 $102,200 102,100 $100
*22. Agriculture Development* Appropriates $2,477,000; eliminates $350,700 in SSFF revenue. Recognizes new $1.3 million federal specialty crop block grant, as well as $300,000IDG from the DELEG. GF/GP support is $147,700 more than current year; $210,990 less than the Executive recommendation.	FTEs Gross IDG Private Federal Restricted GF/GP	6.0 $1,072,000 0 10,800 275,200 606,400 $179,600	0.0 $1,405,000 300,000 100 1,304,100 (346,900) $147,700
*23.* *Michigan* *Agricultural Surplus System (Food Bank)* Eliminates GF/GP funding and partially replaces with SSFF revenue. Retains $150,000IDG from the Department of Human Services and includes new $120,100IDG from the Department of Community Health.	Gross IDG Restricted GF/GP	$630,500 150,000 0 $480,500	($90,400) 120,100 270,000 ($480,500)
*24.* *Upper Peninsula* *State* *Fair* Executive Order 2009-4 would abolish the Upper Peninsula State Fair as a Type II agency within the department; the Conference concurs with the Executive and eliminates the state appropriation.	FTEs Gross Restricted	6.0 $1,372,600 1,372,600	(6.0) ($1,372,600) (1,372,600)
*25. Horse Racing and Producer Security* Appropriates $1,168,900. The Conference Report replaces $1.0 million in SSFF revenue in this line with funding including $683,300 from the AEIDF and $301,000 in GF/GP.	FTEs Gross Restricted GF/GP	9.5 $1,154,600 1,154,600 $0	0.0 $14,300 (286,700) $301,000
*26. Premiums – County and State Fairs* Retains support for fair awards and premiums – funded entirely from State Services Fee Fund revenue.	Gross Restricted	$147,200 147,200	$200,600 200,600
*27.* *Building* *and Track Improvements* Adds support for this line – funded entirely from State Services Fee Fund revenue.	Gross Restricted	$0 0	$129,000 129,000
*28. Horse Industry Programs* Appropriates $6.1 million in AEIDF revenue for horse racing programs. The Executive had recommended only $3.1 million for these programs. FY 09 FY 10 Conf. Purses & supplements-fairs/licensed tracks 1,370,000 1,434,300 Licensed tracks - light horse racing 117,000 79,900 Standardbred (SB) breeders' awards 969,000 586,400 SB purses/supplements-licensed tracks 1,789,300 1,083,000 SB sire stakes 810,000 490,100 Thoroughbred sire stakes 830,000 502,300 SB training and stabling 36,000 21,800 Thoroughbred program 821,400 1,452,500 Thoroughbred owners' awards 124,000 75,100 Distribution of outstanding winning tickets 700,000 423,600 Total $7,566,700 $6,149,000	Gross Restricted	$7,566,700 7,566,700	($1,417,700) (1,417,700)
*29. Office of Racing Commissioner* The Conference Report funds this line with $2.4 million in SSSF revenue and $100,000 from the AEIDF. The Executive had recommended funding this line with AEIDF.	FTEs Gross Restricted	30.0 $2,668,752 2,668,752	0.0 ($93,600) (93,600)
*30. Information Technology* Economic increases of $38,800; eliminates Upper Peninsula State Fair revenue as fund source ($900); recognizes costs of Microsoft upgrades, $86,200; and One-stop permit portal, $74,900. Replaces $1,063,500 SSFF revenue, in part, with GF/GP. GF/GOP funding is $178,600 less than the Executive Recommendation. The department identified actual FY 2008-09 information technology costs provided by the Department of Information Technology to be $3.4 million. Costs not supported in the Information Technology line item are absorbed by other department program areas.	Gross IDG Restricted GF/GP	$1,435,700 2,800 1,296,700 $136,200	$104,600 0 (887,200) $991,800
*31. Capital Outlay–Farmland/Open Space Development Acquisition* Retains current year funding and funds sources. State restricted funds in line are from Agriculture Preservation Fund.	Gross Federal Restricted	$3,750,000 1,250,000 2,500,000	$0 0 0
*32. Economics* The State Budget Office had included in the Executive proposed budget $1.4 million (net) for economic increases: $1,470,800 for employee economics; $38,800 for information technology; and a $91,200 reduction in building occupancy charges.	Gross IDG Federal Private Restricted GF/GP	N/A N/A N/A N/A N/A N/A	$1,418,400 1,300 166,700 6,000 492,700 $751,700

Major Budget Changes From FY 2008-09 YTD Appropriations

FY 2008-09 YTD

Conference

Change

From YTD

1. Commissions and Boards

Appropriates $23,800; eliminates use of Upper Peninsula State Fair revenue as a fund source.

Gross

Restricted

GF/GP

$32,800

17,800

$15,000

($9,000)

(9,000)

2. Unclassified Positions

Appropriates $213,300 – $140,700 less than the Executive recommendation; eliminates SSFF funding. Funding effectively supports two positions; department director and special projects coordinator.

FTEs

Gross

Restricted

GF/GP

6.0

$319,000

160,500

$158,500

(4.0)

($105,700)

(160,500)

$54,800

3. Executive Direction

Appropriates $973,800; replaces SSFF revenue with GF/GP.

FTEs

Gross

Restricted

GF/GP

10.0

$922,600

108,000

$814,600

0.0

$51,200

(71,500)

$122,700

4. Management Services

Appropriates $1,840,900; replaces SSFF revenue with GF/GP.

FTEs

Gross

Restricted

GF/GP

24.0

$1,575,800

136,500

$1,439,300

0.0

$265,100

(15,500)

$280,600

5. Agricultural Statistics

Appropriates $145,000; the Senate had eliminated GF/GP funding.

FTEs

Gross

Restricted

GF/GP

1.0

$143,700

78,400

$65,300

0.0

$1,300

1,300

6. Emergency Management

Appropriates $747,100; retains $500,000 federal grant (new in current year) and 4.0 relatedFTE positions; replaces SSFF revenue with GF/GP.

FTEs

Gross

Federal

Restricted

GF/GP

2.5

$743,300

500,000

243,300

0.0

$3,800

(243,300)

$237,100

7. Internal Audit Services

Internal audit functions were transferred to the Department of Management and Budget/State Budget Office in 2009. The Executive budget anticipated transfer of funding to the DMB budget in FY 2009-10.

Gross

GF/GP

$216,200

$216,200

($216,200)

($216,200)

8. Departmentwide –Rent and Building Occupancy

Executive Order 2008-21 reduced current year GF/GP funding by $240,000; Executive Order 2009-22 eliminated all GF/GP funding in the line. The Conference Report appropriations $421,200 – $439,200 less than the Executive – and includes $53,400 SSFF revenue with no support from the AEIDF.

Baseline reductions in this line are absorbed by other department program areas – actual building occupancy costs total $1.38 million.

Gross

Federal

Restricted

GF/GP

$718,300

185,400

532,900

($297,200)

(32,000)

(265,200)

9. Food and Dairy –Food Safety and Quality Assurance

Appropriates $12,539,700; reflects anticipated additional federal grant revenue. Executive had proposed to offset a $700,000 reduction in GF/GP support with milk inspection fee revenue generated from a proposed alternative inspection fee.

Of the $700,000 in increased dairy inspection fees proposed by the Executive, the Conference Report recognizes $100,000. The Conference Report is $273,000 more in GF/GP support than the Executive recommendation, $271,700 less GF/GP than the current year.

Line item represents the largest share of GF/GP funding in this budget.

FTEs

Gross

Federal

Restricted

GF/GP

115.0

$12,748,000

557,400

2,988,800

$9,201,800

0.0

($208,300)

(86,900)

150,300

($271,700)

10. Food and Dairy – Local Public Health Program

Eliminates the line item and relatedIDG funding, which are simply placeholders used to recognize the Department's oversight role in local public health department food service inspection program. Elimination of the line will not affect the Department's oversight role or local public health agencies' food service inspection programs which are funded in the Department of Community Health budget.

Gross

IDG

$8,878,700

8,878,700

($8,878,700)

(8,878,700)

11. Animal Industry –Animal Heath and Disease Response

Appropriates $2,290,800 – $491,400 less than the current year.

Appropriation eliminates AEIDF funding, recognizes $75,000 in cervid fee revenue, and $138,000 animal welfare fund revenue.

FTEs

Gross

Federal

Restricted

GF/GP

21.5

$2,782,200

865,100

240,100

$1,677,000

0.0

($491,400)

(395,000)

80,900

($177,300)

11a. Bovine Tuberculosis (Animal Industry)

Allocated the second largest GF/GP total within this budget. Offsets reductions in AEIDF and SSFF support with increased GF/GP.

Note that the Conference Report does not adopt the Executive proposal to roll-up Animal Health and Welfare and Bovine Tuberculosis into a single Animal Health and Disease Response line item. Total GF/GP support in the two line items within the Animal Industry appropriations unit is $648,000 less than the Executive recommendation.

FTEs

Gross

Federal

Restricted

GF/GP

48.5

$7,380,200

900,000

2,120,600

$4,359,600

0.0

($41,900)

(118,900)

(2,120,600)

$2,197,600

12. Pesticide and PlantPest Management – PPPM

Appropriates $11,929,300; recognizes anticipated increase in federal grant revenue, addsIDG from MDELEG. The Conference Report is $336,000 less in GF/GP support than the Executive recommendation, $146,900 less GF/GP than the current year.

FTEs

Gross

Federal Private

Restricted

GF/GP

110.0

$11,923,000

2,447,700

148,000

5,165,100

$4,162,200

0.0

$6,300

101,900

4,600

46,700

($146,900)

13. Emerald Ash Borer Program

Appropriation of $3.0 million reflects continuing reduction in federal support for thisprogram;appropriationhadbeenas much as $25.0 million in FYs 2003-04 and 2004-05.

FTEs

Gross

Federal

24.5

$5,191,400

5,191,400

0.0

($2,157,200)

(2,157,200)

14. Environmental Stewardship

Appropriates $2,582,500. Includes and MDEQIDG for MAEAP program which had not been included in the Executive recommendation because funding source is not supported. Includes $110,000 migrant labor housing inspection fees. GF/GP support is $74,400 less than the current year; $224,100 less than the Executive recommendation.

FTEs

Gross

IDG

Federal

Restricted

GF/GP

27.0

$2,606,500

268,600

276,500

49,800

$2,011,600

0.0

($24,000)

176,800

(237,000)

110,600

($74,400)

15. Groundwater/Freshwater Protection Program

Appropriates $5,255,100; reduces federal funding to reflect actual anticipated revenue. Restricted revenue from Freshwater protection fund.

FTEs

Gross

Federal

Restricted

15.0

$5,472,500

467,800

5,004,700

0.0

($217,400)

(252,300)

34,900

16. Technical Assistance Match

Line item supports technicians, working out of local conservation districts, who assist farmers and landowners in completing federally-funded Natural Resources Conservation Service contracts. Not included in Conference Report (rolled into Local conservation districts).

Gross

GF/GP

$252,600

$252,600

($252,600)

($252,600)

17. Local Conservation Districts

Reduces state support to $236,900 GF/GP and adds related boilerplate Section 604.

Gross

GF/GP

$756,800

$756,800

($519,900)

($519,900)

18. Aquifer Protection Program

EliminatesIDG grant funding from the Department of Environmental Quality.

Gross

IDG

$50,000

50,000

($50,000)

(50,000)

19. Water Withdrawal Assessment Program

Eliminates this line item that was new in the current year budget.

Gross

GF/GP

$130,000

$130,000

($130,000)

($130,000)

20. Laboratory Services

Appropriates $5,893,100; replaces $519,700 SSFF revenue with AEIDF.

GF/GP support is $379,900 less than the current year; $527,000 less than the Executive recommendation.

FTEs

Gross

IDG

Federal

Restricted

GF/GP

63.0

$6,218,800

189,100

916,200

2,276,400

$2,837,100

0.0

($325,700)

54,200

($379,900)

21. Consumer Protection Program

Supports motor fuel quality, weights and measures, and metrology laboratory. Restricted revenue from Gasoline inspection and testing fees, Refined petroleum fund, and Weights and measures regulatory fees. Increase reflects economic adjustments.

FTEs

Gross

Restricted

GF/GP

51.0

$5,135,200

5,134,800

$400

0.0

$102,200

102,100

$100

22. Agriculture Development

Appropriates $2,477,000; eliminates $350,700 in SSFF revenue. Recognizes new $1.3 million federal specialty crop block grant, as well as $300,000IDG from the DELEG.

GF/GP support is $147,700 more than current year; $210,990 less than the Executive recommendation.

FTEs

Gross

IDG

Private

Federal

Restricted

GF/GP

6.0

$1,072,000

10,800

275,200

606,400

$179,600

0.0

$1,405,000

300,000

100

1,304,100

(346,900)

$147,700

23. Michigan Agricultural Surplus System (Food Bank)

Eliminates GF/GP funding and partially replaces with SSFF revenue. Retains $150,000IDG from the Department of Human Services and includes new $120,100IDG from the Department of Community Health.

Gross

IDG

Restricted

GF/GP

$630,500

150,000

$480,500

($90,400)

120,100

270,000

($480,500)

24. Upper Peninsula State Fair

Executive Order 2009-4 would abolish the Upper Peninsula State Fair as a Type II agency within the department; the Conference concurs with the Executive and eliminates the state appropriation.

FTEs

Gross

Restricted

6.0

$1,372,600

1,372,600

(6.0)

($1,372,600)

(1,372,600)

25. Horse Racing and Producer Security

Appropriates $1,168,900. The Conference Report replaces $1.0 million in SSFF revenue in this line with funding including $683,300 from the AEIDF and $301,000 in GF/GP.

FTEs

Gross

Restricted

GF/GP

9.5

$1,154,600

1,154,600

0.0

$14,300

(286,700)

$301,000

26. Premiums – County and State Fairs

Retains support for fair awards and premiums – funded entirely from State Services Fee Fund revenue.

Gross

Restricted

$147,200

147,200

$200,600

200,600

27. Building and Track Improvements

Adds support for this line – funded entirely from State Services Fee Fund revenue.

Gross

Restricted

$129,000

129,000

28. Horse Industry Programs

Appropriates $6.1 million in AEIDF revenue for horse racing programs. The Executive had recommended only $3.1 million for these programs.

FY 09 FY 10 Conf.

Purses & supplements-fairs/licensed tracks 1,370,000 1,434,300

Licensed tracks - light horse racing 117,000 79,900

Standardbred (SB) breeders' awards 969,000 586,400

SB purses/supplements-licensed tracks 1,789,300 1,083,000

SB sire stakes 810,000 490,100

Thoroughbred sire stakes 830,000 502,300

SB training and stabling 36,000 21,800

Thoroughbred program 821,400 1,452,500

Thoroughbred owners' awards 124,000 75,100

Distribution of outstanding winning tickets 700,000 423,600

Total $7,566,700 $6,149,000

Gross

Restricted

$7,566,700

7,566,700

($1,417,700)

(1,417,700)

29. Office of Racing Commissioner

The Conference Report funds this line with $2.4 million in SSSF revenue and $100,000 from the AEIDF. The Executive had recommended funding this line with AEIDF.

FTEs

Gross

Restricted

30.0

$2,668,752

2,668,752

0.0

($93,600)

(93,600)

30. Information Technology

Economic increases of $38,800; eliminates Upper Peninsula State Fair revenue as fund source ($900); recognizes costs of Microsoft upgrades, $86,200; and One-stop permit portal, $74,900. Replaces $1,063,500 SSFF revenue, in part, with GF/GP. GF/GOP funding is $178,600 less than the Executive Recommendation.

The department identified actual FY 2008-09 information technology costs provided by the Department of Information Technology to be $3.4 million. Costs not supported in the Information Technology line item are absorbed by other department program areas.

Gross

IDG

Restricted

GF/GP

$1,435,700

2,800

1,296,700

$136,200

$104,600

(887,200)

$991,800

31. Capital Outlay–Farmland/Open Space Development Acquisition

Retains current year funding and funds sources. State restricted funds in line are from Agriculture Preservation Fund.

Gross

Federal

Restricted

$3,750,000

1,250,000

2,500,000

32. Economics

The State Budget Office had included in the Executive proposed budget $1.4 million (net) for economic increases: $1,470,800 for employee economics; $38,800 for information technology; and a $91,200 reduction in building occupancy charges.

Gross

IDG

Federal

Private

Restricted

GF/GP

N/A

N/A

$1,418,400

1,300

166,700

6,000

492,700

$751,700

Major Boilerplate Changes From FY 2008-09
*Sec. 201.* *Total* *State* **Payments/Payments to Local Units –MODIFIED** Identifies total state spending; payments of state funds to local units of government from the funds appropriated. Updated to reflect Part 1 appropriations.
**Sec. 202. Management and Budget Act– RETAINED** Subjects authorized appropriations to the Management and Budget Act.
*Sec. 203. Abbreviations* – MODIFIED Defines abbreviations; includes MDHS, MDELEG
**Sec. 204. Civil Service Charge– MODIFIED** Requires Department of Civil Service to bill departments at the end of the first fiscal quarter for 1% charge authorized in the Constitution; requires payment by the end of the second fiscal quarter. Replaces "Department of Civil Service" with "Civil Service Commission."
**Sec. 205. Hiring Freeze –RETAINED** Imposes a hiring freeze on state classified civil service.
**Sec. 208. Internet Reporting –RETAINED** Requires Department to use the Internet to fulfill reporting requirements.
**Sec. 209. Buy American –RETAINED** Prohibits purchase of foreign goods and services when competitively-priced American goods and services are available. Requires that preference be given toMichigan businesses andMichigan businesses owned and operated by veterans.
**Sec. 210. Deprived/Depressed Communities –RETAINED** Requires director to take reasonable steps to ensure businesses in depressed communities compete for/perform contracts to provide services and supplies, and to encourage contractors to subcontract with such businesses.
**Sec. 212. Indemnification Payments –RETAINED** Authorizes Department to provide for indemnity pursuant to Animal Industry Act; limits indemnification orders to $100,000 per order; requires report on reason for, amount of, and person to whom indemnification is to be paid. Subsection (2) authorizes Department to indemnify for livestock killed by wolves, coyotes, or cougars and to expend funds received from Department of Natural Resources for indemnification payments made pursuant to this section.
**Sec. 214. Grants Reporting –RETAINED** Requires ten-day notice to House and Senate appropriations subcommittees on Agriculture when a grant is made from any line item other than a grant line item.
*Sec. 215. Transparency –NEW*** Requires Department to develop, post, and maintain publicly accessible internet site showing expenditures; cost of site limited to $10,000.
**Sec. 219. Information Technology –RETAINED** Requires Department to pay user fees toDIT subject to provisions of interagency agreement.
**Sec. 220. Information Technology Work Projects –RETAINED** Authorizes carryforward of funds for technology projects.
**Sec. 223. Out-of-State Travel Restriction –RETAINED** Requires a report and places limits on all out-of-state travel.
**Sec. 224. Employee Discipline– MODIFIED** Prohibits disciplinary action against an employee for communicating with a member of the Legislature. Modified to add "truthfully and to the best of his or her knowledge."
*Sec. 225. Agriculture and Livestock Education Pavilion – NOT INCLUDED* Related to MSU Pavilion for Agriculture and Livestock Education.
*Sec. 227. Return on Investment– NOT INCLUDED* Return on investment report.
**Sec. 228. Contingency Appropriations –RETAINED** Includes $5.0 million federal, $6.0 million state restricted, and $100,000 each local and private.
**Sec. 229. Impact of New Legislation and Administrative Rules –RETAINED** Requires Department to report on policy changes made to implement enacted legislation; prohibits disproportionate impact on small businesses.
**Sec. 230. Hire of Outside Legal Counsel –RETAINED** Prohibits state departments from hiring legal services that are the responsibility of the attorney general.
**Sec. 231. Management Service –RETAINED** Establishes baseline level of direct service Department employees – 315 direct service employees.
**Sec. 232. Implement Continuous Improvements –RETAINED** Requires semi-annual report by Department director on continuous improvement.
**Sec. 234. Travel to Out-of-State Training– RETAINED** Sets guidelines for out-of-state travel to conferences or training seminars.
*Sec. 235. C. S. Mott Group– RETAINED* Allows the department to provide funds to C. S. Mott group from sustainable food systems at MSU to plan coordinate and leverage federal funds to enhance local markets.
*Sec. 236. Ag Equine Industry Development Fund –NEW*** All appropriations in part 1 from the agriculture equine industry development fund shall be spent for equine-related purposes.
*Sec. 237. GF/GP Lapse Report –NEW*** Not later thanSeptember 30, 2010, the department shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the office of the state budget, the chairpersons of the senate and house appropriations committees, and the senate and house fiscal agencies.
*Sec. 238.* *FTE* *Report –* *NEW* Bi-monthly report on FTEs.
**Sec. 302. Miscellaneous Revenue/Expenditures –RETAINED** Allows Department to receive/expend revenue to cover expenses related to publications, audits, sales, inspections, and other Department functions; requires legislative notification 30 days prior to proposing fee increases; requires annual report on fees charged by Department.
**Sec. 304. Motor Fuel Quality Inspector –RETAINED** Requires Department to maintain motor fuel quality program at FY 2006-07 level of effort and requires that Department maintain additional field and laboratory staff for the motor fuel quality program.
**Sec. 306. Matching Funds for Agriculture Statistics Studies –RETAINED** Requires industry matching funds for study costs.
**Sec. 401. Restaurant Inspection and Licensing –RETAINED** Requires Department to monitor restaurant inspection/licensing activities conducted by locals and report to Legislature.
**Sec. 402. Food Safety– RETAINED** Requires Department to provide reports on food-borne outbreaks and emergencies related to food safety.
*Sec. 403. Local Programs* – NOT INCLUDED Required that local units of government obtain permission from the Department prior to moving or reallocating program funds appropriated in section 104.
**Sec. 404. Consumer and Industry Food Education Fund –RETAINED** Requires that not less than $150,000 from the fund be expended for purposes required under Section 4117 of the Food Act of 2000.
**Sec. 406. Food Safety FTEs –RETAINED** Exempts food and dairy inspectors from hiring freeze.
*Sec. 407. Earmark for Dairy Inspection Programs– NEW* Directs that funds of the funds appropriated for the Food Safety and Quality Assurance, not less than $3.1 million be expended for dairy inspection programs.
**Sec. 450. Bovine Tuberculosis –RETAINED** Requires Department to reimburseDNR for mutually-agreed-to bovine tuberculosis costs.
*Sec. 451.* *Bovine* *TuberculosisSplitState* **Status –RETAINED** Requires Department to pay for all whole-herd and individual-animal testing costs to maintain split-state status, including indemnity.
*Sec. 452. Bovine TB– RETAINED* Requires Department to apply for all available federal funds to support program.
*Sec. 454. Bovine TB– RETAINED* Directs Department to collaborate with USDA and work to eradicate Bovine TB.
*Sec. 455. Cattle ID– RETAINED* Directs Department to prepare a plan to provide for cattle without identification in saleyard. Not included in Executive budget; Conference retains current language.
**Sec. 456. Electronic Animal Identification –RETAINED** Prohibits use of funds to enforce electronic ID program for domestic animals other than cattle without specific authorization in statute. Not included in Executive budget. Conference retains current language.
*Sec. 457. Bovine TB Report– RETAINED* Requires quarterly report on Bovine TB program.
**Sec. 458. Aquaculture and Viral Hemorrhagic Septicemia (VHS) Eradication Programs –RETAINED** Requires Department support for inspection and testing of aquaculture facilities; states legislative intent with regard to VHS surveillance program.
*Sec. 459. Bovine TB FTEs* – RETAINED Exempts Bovine TB program from hiring freeze.
*Sec. 460. Agriculture Equine Fund Prorated Reductions –* RETAINED Requires that department make proportionate reductions in all appropriations from the AEIDF if revenue falls.
*Sec. 501. Laboratory Services –* *NOT INCLUDED* Provides a sufficient amount from licensing and inspection fees to provide for animal feed testing programs.
*Sec. 551. Fruit and Vegetables Industry Inspections– RETAINED* States legislative intent that the Department work with fruit and vegetable industry to ensure development of a sustainable system of third-party inspections of fruits and vegetables.
**Sec. 603. Migrant Labor Housing– RETAINED** Requires Department to apply for any available federal funds to support the migrant labor housing program.
**Sec. 604. Local Soil Conservation Districts –MODIFIED** Directs that department work with local conservation districts on the most effective efficient use of funding provided in the bill; directs that funding be used to draw down federal funds.
*Sec. 605. Technical Assistance Match– NOT INCLUDED* Appropriates $300,000 to fund local conservation district technical assistance for contracts under Farm Bill of 2002.
**Sec. 606. Environmental Quality Incentives –RETAINED** Requires the department to actively search for all possible funding sources to be used to match federal funds in the USDA environmental quality incentives program.
*Sec. 607.* *Inter-County* *Drain* *Program* –RETAINED Indicates legislative intent that Department continue its activities as provided under the Drain Code.
*Sec. 608. Right to Farm –NEW*** Exempts Right to Farm for budgetary reductions in FY 2009-10 budget year.
*Sec. 609. Migrant Labor Housing Inspection Fees –NEW*** Indicates legislative intent that Department work with industry to develop a migrant labor housing inspection fee, not to exceed $5 per farm, effective no later thanApril 1, 2010.
*Sec. 610. Water Withdrawal –NEW*** Indicates that $130,000 funding for water withdrawal program in Environmental Stewardship is contingent on the department inputting data received under the Section 32708(3) of the Natural Resources and Environmental Protection Act.
**Sec. 702. Food Bank –RETAINED** Allows the Food Bank Council to expend unused funds for direct food purchase.
**Sec. 705. Export Market –RETAINED** Directs state funding to be used to leverage export marketing programs offered by the federal government.
**Sec. 706. Agricultural Development –RETAINED** Requires Department to report on agricultural development and export market development activities.
**Sec. 707. Agricultural Development Fund Grants –RETAINED** Requires Department, in awarding grants from the fund, to give due consideration to the diversity ofMichigan agriculture and its economic importance.
*Sec. 708. Agricultural Development Fund – NOT INCLUDED* Authorizes Department to receive and expend monies from the fund.
**Sec. 709. Grape and Wine Industry Council –RETAINED** Requires Department to provide report describing activities of the council.
**Sec. 710. Export Markets –RETAINED** Allows Department to match external funding for domestic and international marketing programs to develop new and enhance existing export markets forMichigan agricultural products.
*Sec. 711.* *Michigan* *Strategic Fund* – RETAINED Indicates legislative intent that MSF work withMDA to promoteMichigan agriculture.
*Sec. 712. MDELEG* *IDG* *– Designation of Fund Uses –NEW*** Directs use of funds provided byIDG from DELEG; provides reporting requirement, bySeptember 30, 2010.
*Sec. 713. Agriculture Development –* *NEW* Directs that $100,000 be used for agriculture export market development.
**Sec. 801. State Simulcasting Tax Revenue Report– MODIFIED** Requires Department to submit a monthly report on state simulcasting tax revenue and license fees.
*Sec. 802. Purses and Supplements - Licensed Tracks –* Boilerplate earmark for Michigan-bred 4-year olds – $220,000 (AEIDF).
*Sec. 803. Thoroughbred Program Tracks –* Provides funds from Thoroughbred program line to Michigan United Thoroughbred Breeders and Owners Association to conduct a thoroughbred yearling show – $23,500 (AEIDF).
*Sec. 804. Thoroughbred Owners Awards –* Provides funding for thoroughbred owners’ awards; references Horse Racing Law of 1995.
**Sec. 805. Agriculture Equine Fund Reduction –MODIFIED** Requires that department make proportionate reductions in all appropriations from the AEIDF if revenue falls.
**Sec. 806. Fairs –RETAINED** Requires fairs to publish rules and guidelines for exhibits eligible for state premiums; establishes grievance procedures.
*Sec. 807. Purse Supplements –* Provides for overnight purse supplements.
**Sec. 808. Livestock and Equine Exhibits –RETAINED** Allocates $91,400 from Premiums-county and state fairs line item for grants for large livestock and equine exhibitors, including Michigan Horse Show Association’s Fall Youth Show.
**Sec. 809. Youth in Agriculture –RETAINED** Allocates $40,000 from Premiums-county and state fairs line for a grant to promote youth involvement and adult exhibitions in the animal agriculture industry.
*Sec. 811. Outstanding Unclaimed Tickets –* Prohibits using funds for distribution of outstanding winning tickets until they are deposited in the Agriculture Equine Industry Development Fund. Department is to provide ten-day notice before funds are spent.
*Sec. 812. Agriculture Equine Fund Payments– NEW* New section requires "timely payments" from AEIDF.
**Sec. 901. Criminal Activity Information Rewards –RETAINED** Allows racing commissioner to pay rewards up to $5,800 to individuals who provide information on criminal activity involving the horse racing industry.
*Sec. 902. Thoroughbred Program Escrow– RETAINED* Provides for "escrowing" of funds for thoroughbred program. The enacted bill retained current language, (updated to reflect 2008-09 fiscal year). The Governor indicated that the section was unenforceable in that it attempted to amend otherMichigan statutes by reference, a violation of Section 25, Article IV of the Constitution.
*Sec. 903. Notice of Intent to File Administrative Rules– NEW* Requires Office of Racing Commissioner to inform certified horsemen's organization of intent to file administrative rules.
*Sec. 904. Office of Racing Commissioner –NEW*** It is the intent of the legislature that the office of racing commissioner no longer be designated as a type I agency and be administered as part of the department for budgetary savings.
CAPITAL OUTLAY – *Sec. 1001. Farmland and Open Space Development Rights– RETAINED* Indicates that the appropriation for farmland and open space development acquisition shall be used for the purchase of development rights and the awarding of grants by the agriculture preservation fund board under the natural resources and environmental protection act..
*Sec. 1002. Provisions Regarding Lump Sum Payments– RETAINED* Indicates that the director shall allocate lump-sum appropriations made in this act consistent with statutory provisions and the purposes for which funds were appropriated. Limits lump sum appropriation carry forward to no more than 3 fiscal years following appropriation and provides for lapse of funds to original fund source per DMB Act.
*Sec. 1003. Provisions Regarding Carry Forward Authority– RETAINED* Provides for appropriation carry-forward authority per DMB Act.

Major Boilerplate Changes From FY 2008-09

Sec. 201. Total State Payments/Payments to Local Units –MODIFIED

Identifies total state spending; payments of state funds to local units of government from the funds appropriated.

Updated to reflect Part 1 appropriations.

Sec. 202. Management and Budget Act– RETAINED

Subjects authorized appropriations to the Management and Budget Act.

Sec. 203. Abbreviations – MODIFIED

Defines abbreviations; includes MDHS, MDELEG

Sec. 204. Civil Service Charge– MODIFIED

Requires Department of Civil Service to bill departments at the end of the first fiscal quarter for 1% charge authorized in the Constitution; requires payment by the end of the second fiscal quarter. Replaces "Department of Civil Service" with "Civil Service Commission."

Sec. 205. Hiring Freeze –RETAINED

Imposes a hiring freeze on state classified civil service.

Sec. 208. Internet Reporting –RETAINED

Requires Department to use the Internet to fulfill reporting requirements.

Sec. 209. Buy American –RETAINED

Prohibits purchase of foreign goods and services when competitively-priced American goods and services are available. Requires that preference be given toMichigan businesses andMichigan businesses owned and operated by veterans.

Sec. 210. Deprived/Depressed Communities –RETAINED

Requires director to take reasonable steps to ensure businesses in depressed communities compete for/perform contracts to provide services and supplies, and to encourage contractors to subcontract with such businesses.

Sec. 212. Indemnification Payments –RETAINED

Authorizes Department to provide for indemnity pursuant to Animal Industry Act; limits indemnification orders to $100,000 per order; requires report on reason for, amount of, and person to whom indemnification is to be paid. Subsection (2) authorizes Department to indemnify for livestock killed by wolves, coyotes, or cougars and to expend funds received from Department of Natural Resources for indemnification payments made pursuant to this section.

Sec. 214. Grants Reporting –RETAINED

Requires ten-day notice to House and Senate appropriations subcommittees on Agriculture when a grant is made from any line item other than a grant line item.

Sec. 215. Transparency –NEW

Requires Department to develop, post, and maintain publicly accessible internet site showing expenditures; cost of site limited to $10,000.

Sec. 219. Information Technology –RETAINED

Requires Department to pay user fees toDIT subject to provisions of interagency agreement.

Sec. 220. Information Technology Work Projects –RETAINED

Authorizes carryforward of funds for technology projects.

Sec. 223. Out-of-State Travel Restriction –RETAINED

Requires a report and places limits on all out-of-state travel.

Sec. 224. Employee Discipline– MODIFIED

Prohibits disciplinary action against an employee for communicating with a member of the Legislature.

Modified to add "truthfully and to the best of his or her knowledge."

Sec. 225. Agriculture and Livestock Education Pavilion – NOT INCLUDED

Related to MSU Pavilion for Agriculture and Livestock Education.

Sec. 227. Return on Investment– NOT INCLUDED

Return on investment report.

Sec. 228. Contingency Appropriations –RETAINED

Includes $5.0 million federal, $6.0 million state restricted, and $100,000 each local and private.

Sec. 229. Impact of New Legislation and Administrative Rules –RETAINED

Requires Department to report on policy changes made to implement enacted legislation; prohibits disproportionate impact on small businesses.

Sec. 230. Hire of Outside Legal Counsel –RETAINED

Prohibits state departments from hiring legal services that are the responsibility of the attorney general.

Sec. 231. Management Service –RETAINED

Establishes baseline level of direct service Department employees – 315 direct service employees.

Sec. 232. Implement Continuous Improvements –RETAINED

Requires semi-annual report by Department director on continuous improvement.

Sec. 234. Travel to Out-of-State Training– RETAINED

Sets guidelines for out-of-state travel to conferences or training seminars.

Sec. 235. C. S. Mott Group– RETAINED

Allows the department to provide funds to C. S. Mott group from sustainable food systems at MSU to plan coordinate and leverage federal funds to enhance local markets.

Sec. 236. Ag Equine Industry Development Fund –NEW

All appropriations in part 1 from the agriculture equine industry development fund shall be spent for equine-related purposes.

Sec. 237. GF/GP Lapse Report –NEW

Not later thanSeptember 30, 2010, the department shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the office of the state budget, the chairpersons of the senate and house appropriations committees, and the senate and house fiscal agencies.

Sec. 238. FTE Report – NEW

Bi-monthly report on FTEs.

Sec. 302. Miscellaneous Revenue/Expenditures –RETAINED

Allows Department to receive/expend revenue to cover expenses related to publications, audits, sales, inspections, and other Department functions; requires legislative notification 30 days prior to proposing fee increases; requires annual report on fees charged by Department.

Sec. 304. Motor Fuel Quality Inspector –RETAINED

Requires Department to maintain motor fuel quality program at FY 2006-07 level of effort and requires that Department maintain additional field and laboratory staff for the motor fuel quality program.

Sec. 306. Matching Funds for Agriculture Statistics Studies –RETAINED

Requires industry matching funds for study costs.

Sec. 401. Restaurant Inspection and Licensing –RETAINED

Requires Department to monitor restaurant inspection/licensing activities conducted by locals and report to Legislature.

Sec. 402. Food Safety– RETAINED

Requires Department to provide reports on food-borne outbreaks and emergencies related to food safety.

Sec. 403. Local Programs – NOT INCLUDED

Required that local units of government obtain permission from the Department prior to moving or reallocating program funds appropriated in section 104.

Sec. 404. Consumer and Industry Food Education Fund –RETAINED

Requires that not less than $150,000 from the fund be expended for purposes required under Section 4117 of the Food Act of 2000.

Sec. 406. Food Safety FTEs –RETAINED

Exempts food and dairy inspectors from hiring freeze.

Sec. 407. Earmark for Dairy Inspection Programs– NEW

Directs that funds of the funds appropriated for the Food Safety and Quality Assurance, not less than $3.1 million be expended for dairy inspection programs.

Sec. 450. Bovine Tuberculosis –RETAINED

Requires Department to reimburseDNR for mutually-agreed-to bovine tuberculosis costs.

Sec. 451. Bovine TuberculosisSplitState Status –RETAINED

Requires Department to pay for all whole-herd and individual-animal testing costs to maintain split-state status, including indemnity.

Sec. 452. Bovine TB– RETAINED

Requires Department to apply for all available federal funds to support program.

Sec. 454. Bovine TB– RETAINED

Directs Department to collaborate with USDA and work to eradicate Bovine TB.

Sec. 455. Cattle ID– RETAINED

Directs Department to prepare a plan to provide for cattle without identification in saleyard.

Not included in Executive budget; Conference retains current language.

Sec. 456. Electronic Animal Identification –RETAINED

Prohibits use of funds to enforce electronic ID program for domestic animals other than cattle without specific authorization in statute. Not included in Executive budget. Conference retains current language.

Sec. 457. Bovine TB Report– RETAINED

Requires quarterly report on Bovine TB program.

Sec. 458. Aquaculture and Viral Hemorrhagic Septicemia (VHS) Eradication Programs –RETAINED

Requires Department support for inspection and testing of aquaculture facilities; states legislative intent with regard to VHS surveillance program.

Sec. 459. Bovine TB FTEs – RETAINED

Exempts Bovine TB program from hiring freeze.

Sec. 460. Agriculture Equine Fund Prorated Reductions – RETAINED

Requires that department make proportionate reductions in all appropriations from the AEIDF if revenue falls.

Sec. 501. Laboratory Services – NOT INCLUDED

Provides a sufficient amount from licensing and inspection fees to provide for animal feed testing programs.

Sec. 551. Fruit and Vegetables Industry Inspections– RETAINED

States legislative intent that the Department work with fruit and vegetable industry to ensure development of a sustainable system of third-party inspections of fruits and vegetables.

Sec. 603. Migrant Labor Housing– RETAINED

Requires Department to apply for any available federal funds to support the migrant labor housing program.

Sec. 604. Local Soil Conservation Districts –MODIFIED

Directs that department work with local conservation districts on the most effective efficient use of funding provided in the bill; directs that funding be used to draw down federal funds.

Sec. 605. Technical Assistance Match– NOT INCLUDED

Appropriates $300,000 to fund local conservation district technical assistance for contracts under Farm Bill of 2002.

Sec. 606. Environmental Quality Incentives –RETAINED

Requires the department to actively search for all possible funding sources to be used to match federal funds in the USDA environmental quality incentives program.

Sec. 607. Inter-County Drain Program –RETAINED

Indicates legislative intent that Department continue its activities as provided under the Drain Code.

Sec. 608. Right to Farm –NEW

Exempts Right to Farm for budgetary reductions in FY 2009-10 budget year.

Sec. 609. Migrant Labor Housing Inspection Fees –NEW

Indicates legislative intent that Department work with industry to develop a migrant labor housing inspection fee, not to exceed $5 per farm, effective no later thanApril 1, 2010.

Sec. 610. Water Withdrawal –NEW

Indicates that $130,000 funding for water withdrawal program in Environmental Stewardship is contingent on the department inputting data received under the Section 32708(3) of the Natural Resources and Environmental Protection Act.

Sec. 702. Food Bank –RETAINED

Allows the Food Bank Council to expend unused funds for direct food purchase.

Sec. 705. Export Market –RETAINED

Directs state funding to be used to leverage export marketing programs offered by the federal government.

Sec. 706. Agricultural Development –RETAINED

Requires Department to report on agricultural development and export market development activities.

Sec. 707. Agricultural Development Fund Grants –RETAINED

Requires Department, in awarding grants from the fund, to give due consideration to the diversity ofMichigan agriculture and its economic importance.

Sec. 708. Agricultural Development Fund – NOT INCLUDED

Authorizes Department to receive and expend monies from the fund.

Sec. 709. Grape and Wine Industry Council –RETAINED

Requires Department to provide report describing activities of the council.

Sec. 710. Export Markets –RETAINED

Allows Department to match external funding for domestic and international marketing programs to develop new and enhance existing export markets forMichigan agricultural products.

Sec. 711. Michigan Strategic Fund – RETAINED

Indicates legislative intent that MSF work withMDA to promoteMichigan agriculture.

Sec. 712. MDELEG IDG – Designation of Fund Uses –NEW

Directs use of funds provided byIDG from DELEG; provides reporting requirement, bySeptember 30, 2010.

Sec. 713. Agriculture Development – NEW

Directs that $100,000 be used for agriculture export market development.

Sec. 801. State Simulcasting Tax Revenue Report– MODIFIED

Requires Department to submit a monthly report on state simulcasting tax revenue and license fees.

Sec. 802. Purses and Supplements - Licensed Tracks –

Boilerplate earmark for Michigan-bred 4-year olds – $220,000 (AEIDF).

Sec. 803. Thoroughbred Program Tracks –

Provides funds from Thoroughbred program line to Michigan United Thoroughbred Breeders and Owners Association to conduct a thoroughbred yearling show – $23,500 (AEIDF).

Sec. 804. Thoroughbred Owners Awards –

Provides funding for thoroughbred owners’ awards; references Horse Racing Law of 1995.

Sec. 805. Agriculture Equine Fund Reduction –MODIFIED

Requires that department make proportionate reductions in all appropriations from the AEIDF if revenue falls.

Sec. 806. Fairs –RETAINED

Requires fairs to publish rules and guidelines for exhibits eligible for state premiums; establishes grievance procedures.

Sec. 807. Purse Supplements –

Provides for overnight purse supplements.

Sec. 808. Livestock and Equine Exhibits –RETAINED

Allocates $91,400 from Premiums-county and state fairs line item for grants for large livestock and equine exhibitors, including Michigan Horse Show Association’s Fall Youth Show.

Sec. 809. Youth in Agriculture –RETAINED

Allocates $40,000 from Premiums-county and state fairs line for a grant to promote youth involvement and adult exhibitions in the animal agriculture industry.

Sec. 811. Outstanding Unclaimed Tickets –

Prohibits using funds for distribution of outstanding winning tickets until they are deposited in the Agriculture Equine Industry Development Fund. Department is to provide ten-day notice before funds are spent.

Sec. 812. Agriculture Equine Fund Payments– NEW

New section requires "timely payments" from AEIDF.

Sec. 901. Criminal Activity Information Rewards –RETAINED

Allows racing commissioner to pay rewards up to $5,800 to individuals who provide information on criminal activity involving the horse racing industry.

Sec. 902. Thoroughbred Program Escrow– RETAINED

Provides for "escrowing" of funds for thoroughbred program.

The enacted bill retained current language, (updated to reflect 2008-09 fiscal year). The Governor indicated that the section was unenforceable in that it attempted to amend otherMichigan statutes by reference, a violation of Section 25, Article IV of the Constitution.

Sec. 903. Notice of Intent to File Administrative Rules– NEW

Requires Office of Racing Commissioner to inform certified horsemen's organization of intent to file administrative rules.

Sec. 904. Office of Racing Commissioner –NEW

It is the intent of the legislature that the office of racing commissioner no longer be designated as a type I agency and be administered as part of the department for budgetary savings.

CAPITAL OUTLAY –

Sec. 1001. Farmland and Open Space Development Rights– RETAINED

Indicates that the appropriation for farmland and open space development acquisition shall be used for the purchase of development rights and the awarding of grants by the agriculture preservation fund board under the natural resources

and environmental protection act..

Sec. 1002. Provisions Regarding Lump Sum Payments– RETAINED

Indicates that the director shall allocate lump-sum appropriations made in this act consistent with statutory provisions and the purposes for which funds were appropriated. Limits lump sum appropriation carry forward to no more than 3 fiscal years following appropriation and provides for lapse of funds to original fund source per DMB Act.

Sec. 1003. Provisions Regarding Carry Forward Authority– RETAINED

Provides for appropriation carry-forward authority per DMB Act.

9/23/2009 3:47 PM